In the 1980s, Nike and Reebok were fierce rivals in the running shoes market in the U.S. Their competitive relationship was often described as ‘Coca-Cola and Pepsi of the running shoes industry’. Until 1989, Nike and Reebok were neck to neck in terms of size, product line-up and brand awareness. However, Reebok’s expansion efforts away from its core sports apparel business to Ralph Lauren shoes, Boston Whaler’s boats, western boots and golf wear practically put an end to the competition. After years of lost direction and crisis, Reebok was acquired by Adidas in 2006. Meanwhile, Nike successfully built up a virtuous business model consisting of 4 elements of: branding using the unique swoosh logo, partnership with sports players, design and new material and efficient distribution network in Asia.

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